OMAHA, Neb. —

Former Nebraska Liquor Control Commission Executive Director Hobert Rupe and Brent Zywiec, co-owner of two Lincoln strip clubs, pleaded not guilty to charges of honest services fraud during virtual hearings.

The judge allowed their release with conditions.

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Investigators say Zywiec co-owns the Night Before Lounge and the Office Gentlemen's Club in Lincoln, while Rupe is accused of receiving favors, including cash and sex acts.

Most of the hearing involved questioning an FBI special agent, who said Zywiec was arrested after a SWAT raid on his Fairbury, Nebraska, farm early Wednesday morning.

The co-defendants are accused of working together against rival clubs, specifically Club 180 and Club Omaha, in Omaha.

Club Omaha's owner alleged on Facebook that

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